Global markets for European providers

Contents

European ETF promoters see geographic expansion as a primary source of growth, with Asia-Pacific by far the most popular target region.

Yet promoters are far from certain what approach to adopt or which structures are most likely to succeed. Asia-Pacific is even more fragmented than Europe in terms of taxes, culture and other issues.

The difficulty of cross-listing between key Asian markets is a particular difficulty, forcing entrants seeking a regional presence to add cost layers. Some European promoters are pinning their hopes on UCITS ETFs, given the success of the UCITS brand in several key Asia-Pacific markets, but this does not avoid the cross-listing problem.

The expanding middle classes of Latin America could also generate significant demand, as could Russia and the Middle East. Mature markets where ETFs are underdeveloped, such as Australia and Japan, are also appealing

What expansion to your distribution network are you currently considering? (Promoter responses only, multiple responses permitted)

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